Market Making Bot FAQ
What is Market Maker Bot?
A Market Making Bot is a software that can make high frequency automated trades. It also anticipates profit from the difference in the bid-ask spread. You can read our blog post where we explain what Market Making Bot is in practice.
What are the advantages of using our Market Making Bot?
Our Market Making bot is a computer program designed to simulate human behavior (to behave like a trader), performing otherwise time-consuming, mundane or impossible repetitive tasks for a human. It is executing a trading strategy from a conventional market maker, placing successive buy and sell orders in an attempt to profit from the bid-ask spread difference and price fluctuation. In this case, a Market Making Bot will ensure higher efficiency and liquidity on the market, while bot users – market makers – earn a profit on an outcome from different trades with different prices.
How does it work?
The Market Making Bot places limit orders based on settings that you set in the wizard. Bot attempt to profit from the spread between the two orders.
What do I need to get started?
You need Tokens.net main account with an available balance. Under balances > overview you must create a secondary account and transfer funds to it. Then you need to choose what currency and the amount you wish to transfer to the secondary account.
How can I set up Market Making Bot?
We have step by step tutorial on our blog.
How to verify if the bot is active?
After you have enabled the Market Making Bot, orders should be placed in a few seconds. If no orders are placed a check if Market Making Bot is enabled, has a balance on the selected side, and has the right trading pair selected. Also make sure that you are on correct account with the Market Maker Bot.
If the pair, where you placed the Market Making Bot, has a low volume that means that price did not change that much and based on your settings and placed orders there have been no trades.
In short, you should see the orders. Trades are conditional based on market fluctuation.
Can I create bot without balance?
Yes, you can create a bot and set it without an available balance. However, it will not place orders and will not work until you deposit funds on the account with the Market Maker Bot.
How much balance of my wallet does Market Making Bot use?
It depends on the strategy and how long bot is running. If you set Conservative strategy the bot will place 10 orders and each order will be 5% of the account balance. The Normal strategy will place 10 orders with 4% balance. Finally, an Aggressive strategy will make 20 orders with 0.4% balance. However, if the user desires they can set a custom strategy. If your bot is running for the long time period it will place multiple orders and it can use up to 100% of the available balance.
Can I have two bots working simultaneously?
Yes, you can have multiple active bots. However, you need to create a new account under the main account for every bot you wish to deploy.
What are Market Maker strategies?
A conservative strategy will maintain higher bid-ask spreads of 5%, meaning lower risks. A normal strategy will maintain a spread of 2%. An aggressive strategy will maintain a small bid-ask spread of 0.1%, which represents higher risks. The strategies can be changed and customized after the bot is set up.
How do I switch one strategy to another?
On platform go to Market Making tab. Select the bot that you wish to change strategy and click settings. Click on current strategy and a drop-down will open where you can change it.
Can I set custom settings?
Yes, you can set custom settings. We have pre-set 3 different strategies, but if you wish to set custom strategy to choose Custom and set desired settings.
Can I use Market Making Bot without a risk?
Using the Market Making Bot is not without risk. So, you should only use small amounts before you learn how to set it up properly.
How much profit can I make?
It depends on market fluctuation. Bot follows the market and places orders as long as you have balance. If the price fluctuates but returns to the same price at some point, you will make a profit. If the price only moves in one direction and never comes back, you will make a loss. How big of a movement your bot can tolerate depends on the spread percentage and order size specified in percentage of the balance.
What is your refund policy? Is there a risk associated with Market Making Bot?
Market Making Bot is a feature you can use based on settings you set, you solely bear the responsibilities and losses that may arise therefrom.
What happens if the price goes down 20%?
Market Making Bot will keep placing orders based on the selected strategy until the account no longer has an available balance.
How can I contact you?
If you have questions or suggestions, you can contact us via the platform ticketing system.